Archive for the ‘Belize banking’ Category

A federal court in Miami authorized the Internal Revenue Service to serve a “John Doe” summons seeking information about those US taxpayers who may hold offshore accounts at Belize Bank International Limited(BBIL) or Belize Bank Limited (BBL). The court order permits to seek records of the banks’ correspondent accounts at Bank of America and Citibank, to identify the holders of interest in financial accounts of the Belizean banks, as well as other institutions that used the same correspondent accounts.

US taxpayers are required by Federal tax law to pay taxes on all income earned worldwide. US taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year, otherwise they can be liable to a fine of up to 50 percent of the amount in the account at the time of the violation.

Belize Bank is the first and largest bank in Belize, with 44% market share in loans and 38% in deposits. According to the IRS declaration, Belize Bank Limited is the direct owner of Belize Bank International Limited. It also states that Belize Corporate Services (BCS) is incorporated and based in Belize and offers corporate services including the purchase of “shelf” Belizean International Business Companies. BBL, BBIL and BCS are corporate subsidiaries of BCB Holdings Limited.

The Development Finance Corporation (DFC) in Belize received a US$10.5 million loan from the Caribbean Development Bank (CDB) which will help to provide financing for priority sectors in the jurisdiction.

The main objectives of the DFC are the improvement of home ownership, human development and development of micro, small and medium-sized enterprises, which are the significant part of Belize economy.

The loan from the Caribbean Development Bank will allow the Development Finance Corporation to provide financial support to the enterprises that very often face limited access to financing, as well as provide student loans, credits for low-income housing and for energy efficiency/renewable energy projects.

The Belize Bank Limited has filed a petition at federal court in Washington, D.C., seeking to enforce US$18 million arbitration award against Belize Government. Belize Bank claims that the Belize Government “did not respond” to a demand to satisfy a “final award” issued by the London Court of International Arbitration on January 15, 2013. The award comprised BZ$36.9 million, plus annual compounded interest of 17% from September 8, 2012 until the date of the payment, regarding unpaid loans, plus £536,818 in legal costs.

It is stated in the petition that the loans were advanced to Universal Health Service Company Limited, a provider of healthcare services in Belize, and guaranteed by the Government of Belize in December 2004.

Belize Bank Ltd is controlled by British businessman and political activist Michael Ashcroft who has dual nationality of UK and Belize, and is a belonger of the Turks and Caicos Islands.

A regional anti-money laundering body has called on Caribbean countries to consider implementing counter measures in order to protect their financial systems from the ongoing risks of money laundering and terrorist financing emanating from Belize.

The counter measures, which amount to a financial blacklisting of the jurisdiction, will mean that all financial transactions between T&T and Belize will be placed under much greater scrutiny, and it is possible that wire transfers and other payments would be delayed or denied.

To comment on the impact of the counter measures on trade and payments between T&T and Belize, Republic Bank executive director, Nigel Baptiste, said: “These measures will undoubtedly negatively affect trade and payments between the countries as the enhanced monitoring will result in longer turnaround time, higher costs and possibly the refusal of accepting payments where information requirements are not met.”